The price level rises in the short run if
a. aggregate demand or aggregate supply shifts right.
b. aggregate demand shifts right or aggregate supply shifts left.
c. aggregate demand shifts left or aggregate supply shifts right.
d. aggregate demand or aggregate supply shifts right.
b
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To calculate the growth rate of a variable, you will
A) calculate the percentage change from one time period to the next. B) calculate the difference between the two variables. C) add the ending value to the beginning value. D) divide the increase by the number of time periods.
When the text refers to rational self-interest, it means
A) your looking out for what is best for you as an individual. B) your focus on your own contributions to society. C) behavior that makes society better off. D) behavior that helps your employer earn higher profits.
The First Theorem of Welfare Economics states that:
a. only Walrasian equilibria can be Pareto optimal. b. all Walrasian equilibria are Pareto optimal. c. a Walrasian equilibrium price vector can always be found. d. some Walrasian equilibria may be unfair.
With flexible exchange rates
A. The balance of trade is zero. B. All countries will run either a trade surplus or trade deficit. C. The equilibrium exchange rate is determined in a foreign exchange market. D. Foreign exchange reserves are used to offset balance-of-payment deficits.